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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5202 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5202

  To amend the Fentanyl Sanctions Act to strengthen the imposition of 
           sanctions under that Act, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

   Mr. Rubio introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
  To amend the Fentanyl Sanctions Act to strengthen the imposition of 
           sanctions under that Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fentanyl Reduction Engrained by 
Economic Deterrence Act'' or the ``FREED Act''.

SEC. 2. EXPANSION OF SANCTIONS UNDER THE FENTANYL SANCTIONS ACT.

    (a) In General.--Section 7212 of the Fentanyl Sanctions Act (21 
U.S.C. 2312) is amended to read as follows:

``SEC. 7212. IMPOSITION OF SANCTIONS.

    ``(a) Application to Foreign Persons.--The President shall impose 
the sanctions described in section 7213(a)(6) with respect to any 
foreign person that--
            ``(1) is identified as a foreign opioid trafficker in the 
        report submitted under section 7211(a); or
            ``(2) the President determines--
                    ``(A) knowingly has engaged in, or attempted to 
                engage in, an activity or transaction that has 
                materially contributed to, or poses a significant risk 
                of materially contributing to, opioid trafficking;
                    ``(B) knowingly has received any property or 
                interest in property that the foreign person knows or 
                should have known--
                            ``(i) constitutes or is derived from the 
                        proceeds of an activity or transaction 
                        described in subparagraph (A); or
                            ``(ii) was used or intended to be used to 
                        commit or to facilitate such an activity or 
                        transaction;
                    ``(C) knowingly has provided, or attempted to 
                provide, financial, material, or technological support 
                for, including through the provision of goods or 
                services in support of--
                            ``(i) any activity or transaction described 
                        in subparagraph (A); or
                            ``(ii) any foreign person described in 
                        paragraph (1) or clause (i) of this 
                        subparagraph;
                    ``(D) is an adult spouse or other family member of 
                an individual described in paragraph (1) or 
                subparagraph (A), (B), or (C) of this paragraph; or
                    ``(E) is or has been owned, controlled, or directed 
                by, or has knowingly acted or purported to act for or 
                on behalf of, directly or indirectly, any foreign 
                person described in paragraph (1) or subparagraph (A), 
                (B), or (C) of this paragraph.
    ``(b) Application to Agencies and Instrumentalities of Foreign 
States.--The President shall impose 3 or more of the sanctions 
described in section 7213 with respect to--
            ``(1) each agency or instrumentality of a foreign state (as 
        defined in section 1603(b) of title 28, United States Code) 
        that the President determines--
                    ``(A) has engaged in, or attempted to engage in, an 
                activity or transaction that has materially contributed 
                to, or poses a significant risk of materially 
                contributing to, opioid trafficking; or
                    ``(B) has provided, or attempted to provide, 
                financial, material, or technological support for, 
                including through the provision of goods or services in 
                support of, any activity or transaction described in 
                subparagraph (A);
            ``(2) each foreign person the President determines is a 
        senior official of an agency or instrumentality of a foreign 
        state described in paragraph (1); and
            ``(3) each foreign person that the President determines is 
        or has been owned, controlled, or directed by, or has knowingly 
        acted or purported to act for or on behalf of, directly or 
        indirectly, an agency or instrumentality of a foreign state 
        described in paragraph (1) or a foreign person described in 
        paragraph (2).
    ``(c) Determination of Applicability to Certain Foreign Persons.--
            ``(1) In general.--The sanctions described in section 7213 
        may not apply to a foreign person described in subsection 
        (a)(1)(D) if the President determines that there is clear and 
        convincing evidence the person--
                    ``(A) is no longer in contact with the individual 
                described in paragraph (1) of subsection (a) or 
                subparagraph (A), (B), or (C) of paragraph (2) of that 
                subsection; and
                    ``(B) has provided reliable assurances that the 
                person will not engage in any conduct described in 
                subsection (a) in the future.
            ``(2) Notification.--Not later than 30 days after making a 
        determination under paragraph (1), the President shall submit 
        to the appropriate congressional committees and leadership a 
        report on the determination.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 90 days after the date of the enactment 
of this Act.
    (c) Regulatory Authority.--
            (1) In general.--The President shall, not later than 180 
        days after the date of the enactment of this Act, prescribe 
        regulations as necessary for the implementation of the 
        amendment made by subsection (a).
            (2) Notification to congress.--Not later than 10 days 
        before prescribing regulations under paragraph (1), the 
        President shall notify the appropriate congressional committees 
        and leadership (as defined in section 7203 of the Fentanyl 
        Sanctions Act (21 U.S.C. 2302)) with respect to the proposed 
        regulations.

SEC. 3. DETERMINATION OF WHETHER CERTAIN ENTITIES OF THE PEOPLE'S 
              REPUBLIC OF CHINA MEET CRITERIA FOR IMPOSITION OF 
              SANCTIONS.

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of the Treasury, in consultation 
with the Secretary of State and the Attorney General, shall--
            (1) determine whether any entity specified in subsection 
        (b)--
                    (A) is responsible for or complicit in, the 
                production, manufacture, distribution, sale, of 
                fentanyl, fentanyl analogues, or the precursor 
                chemicals for fentanyl or its analogues; or
                    (B) meets the criteria for the imposition of 
                sanctions under--
                            (i) the Fentanyl Sanctions Act (21 U.S.C. 
                        2301 et seq.);
                            (ii) the Foreign Narcotics Kingpin 
                        Designation Act (21 U.S.C. 1901 et seq.); or
                            (iii) Executive Order 14059 (50 U.S.C. 1701 
                        note; relating to imposing sanctions on foreign 
                        persons involved in the global illicit drug 
                        trade);
            (2) submit to Congress a report on the determination made 
        under paragraph (1) with respect to each entity specified in 
        subsection (b) that includes the reasons for the determination; 
        and
            (3) if the Secretary of the Treasury makes an affirmative 
        determination under paragraph (1) with respect to an entity 
        specified in subsection (b), include the entity on the list of 
        specially designated nationals and blocked persons maintained 
        by the Office of Foreign Assets Control.
    (b) Entities Specified.--An entity specified in this subsection is 
any of the following:
            (1) Bank of China Limited.
            (2) Ministry of Public Security.
            (3) General Administration of China Customs.
            (4) Alibaba.
            (5) Hebei Aicrowe Biotech Co. Ltd.
            (6) Shanghai Huilitongda Biological Technology Co. Ltd.
            (7) Crovell Biotech Co. Ltd.
            (8) Shunwei Biological.
            (9) Ministry of State Security.
    (c) Form of Report.--The report required by subsection (a)(2) shall 
be submitted in unclassified form, but may include a classified annex.

SEC. 4. DETERMINATIONS WITH RESPECT TO PRIMARY MONEY LAUNDERING CONCERN 
              RELATING TO FINANCING OF ILLICIT FENTANYL AND OTHER 
              CONTROLLED SUBSTANCES.

    If the Secretary of the Treasury determines that 1 or more 
financial institutions operating outside of the United States, 1 or 
more classes of transactions within, or involving, a jurisdiction 
outside of the United States, or 1 or more types of accounts within, or 
involving, a jurisdiction outside of the United States, is of primary 
money laundering concern in connection with the financing of illicit 
fentanyl and other controlled substances, the Secretary of the Treasury 
may, by order, regulation, or otherwise as permitted by law, require 
domestic financial institutions and domestic financial agencies to take 
one or more of the special measures described in section 5318A(b) of 
title 31, United States Code.

SEC. 5. REPORT ON IMPROVED ENFORCEMENT WITH RESPECT TO MONEY LAUNDERING 
              RELATING TO FINANCING OF ILLICIT FENTANYL AND OTHER 
              CONTROLLED SUBSTANCES.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit to 
appropriate congressional committees a report that identifies any 
additional regulations, statutory changes, enhanced due diligence 
requirements, or reporting requirements the Secretary determines are 
necessary to better identify, prevent, and combat money laundering 
connected with the financing of illicit fentanyl and other controlled 
substances, including related to--
            (1) identifying the beneficial ownership of anonymous 
        entities; and
            (2) enhanced know-your-customer procedures and screenings 
        for transactions involving any organization identified by the 
        Secretary as--
                    (A) a drug cartel or other criminal organization 
                based in Mexico;
                    (B) a money laundering organization based in the 
                People's Republic of China; or
                    (C) any other entity involved in the financing of 
                illicit fentanyl.
    (b) Form.--
            (1) In general.--The report required by subsection (a) 
        shall be submitted in unclassified form, but may include a 
        classified annex and be accompanied by a classified briefing.
            (2) Public availability.--The unclassified portion of the 
        report required by subsection (a) shall be made available to 
        the public, including on a publicly accessible internet website 
        of the Department of the Treasury.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees\\'' means--
            (1) the Committee on Banking, Housing, and Urban Affairs 
        and the Committee on Foreign Relations of the Senate; and
            (2) the Committee on Financial Services and the Committee 
        on Foreign Affairs of the House of Representatives.

SEC. 6. SENSE OF CONGRESS ON INTERNATIONAL COOPERATION.

    It is the sense of Congress that the Secretary of the Treasury and 
other relevant Federal officials, such as the Secretary of State, the 
Secretary of Homeland Security, and the Attorney General, should work 
jointly with financial intelligence units, trade transparency units, 
and appropriate law enforcement authorities of Canada, the United 
Kingdom, the European Union, and other countries in Europe, Latin 
America, and the Caribbean, to identify and present, in the report 
required by section 5 and in future analyses of suspicious transaction 
reports, cash transaction reports, currency and monetary instrument 
reports, and other relevant data to identify trends and assess risks in 
the movement of illicit funds from illicit fentanyl operations from 
Mexico, India, the People's Republic of China, or any country in the 
Western Hemisphere through the financial systems of the United States, 
the United Kingdom, and Europe.
                                 <all>
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